Boy, for a second there, after reading this weekend's worth of posts on the Home thread, I thought I was off in dreamland still. Bearish post after bearish post - shoot even spirit was bullish and noted he capitulated on Friday.
Am I still dreaming? Isn't this the home of da bulls?
Actually, after throwing some water on my face to be sure I was awake, I find indeed that the bearish comments are real. And to think, I just my bear suit in the closet late Friday and am wearing the horns now.
As anyone who has read my posts knows, I have been bearish for a while, especially in tech. But after Thursday's and Friday's action - I but the bear in hibernation and bought 8 different techs in the last 90 minutes on Friday - and after doing my research this weekend - may look to add another half dozen or so this weekend.
Now, that doesn't mean I am putting away the bearsuit for good - but I think we may see a nice little tradable rally. From the oversold conditions overall, looking at particular stocks, there are some good opportunities. But Monday is critical IMO - and we need to see some follow-thru from Friday's late action. If there is no follow-thru - then I may bail. But if there is, well, here is the hand I will play with:
DIGL, TIBX, KEI, WIND, AVCI, AVNX, BRCD, AMCC
Many of these have very intriguing candlestick chart patterns signaling potential reversals. I won't list each one or reason - but they are compelling so check them out. Most have been on big downturns and are far into oversold territory. Interestingly, all but AMCC and BRCD have PEG's less than 1 (and BRCD is at 1, AMCC is at 1.1) So IMO they are worth taking a shot on at this level (and right now I am up nicely on them overall from my Friday buys).
Then if Monday shows some followthru - I may add any of the following:
TXCC, GLW, LSI, ATML, SNDK, SAWS, SSTI
All of these also have PEGs less than 1. Some are ridiculously low. Many have p/e's (TTM) and forward p/e's much less than their historical ratios.
I have a several others my research unearthed - but these are the ones I feel most comfortable with. But again, Monday is critical. no follow-thru and the bearsuit probably comes back out of the closet. But if we do get followthru - I think their is a nice probability of profit opportunities on all those stocks noted. Thus IMO risk / reward was favorable so far. And rememeber - for me its just a trade - not a long term investment.
That all said, do your own DD - and I will check back later to see what all the bears here have to say - LOL. No seriously, I would welcome any thoughts or comments. Maybe I am dead wrong and should have kept my bearsuit on like I have for the last month - but the action, volume, key indicators like the VIX, VXN, Tick, etc) on Thursday and Friday has peaked my interest. We will see. |
